65.942 Terms and conditions of leases -- Leasing for financing property purchases -
494 words·~2 min read·
/ky/65-942A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
- Sinking fund -- Time period for challenging validity of ordinance or
resolution.
(a)The governing body of a governmental agency may approve by ordinance,
order, or resolution and may execute, perform, and make payments under a
lease with any person, to acquire or construct personal property or real
property for any public purpose.
(b)The lease may be on the terms and conditions that are deemed appropriate by
the governing body.
(c)Leases may be payable in whole or in part from taxes and may be obligations
of the governmental agency for the entire term of the lease or for a period that
does not exceed one
(1)year.
(d)Leases may contain an option or options to renew or extend the term and may
be made payable from a pledge of all or any part of any revenues, funds, or
taxes or any combination of any revenues, funds, or taxes, which are available
to the governmental agency for its public purposes.
(a)A governmental agency may pledge any revenues or taxes as security for
payment under leases, and the leases may provide that the governmental
agency may terminate its obligations under the lease at the expiration of each
year during the term of the lease.
(b)A governmental agency may pledge any revenue or taxes as security for
payment under a lease regardless of any right to terminate.
(c)The lease may provide for the payment of interest on the unpaid amount of the
lease price at a rate, rates, or method of determining rates and may contain
prepayment provisions, termination penalties, and other provisions determined
by the governing body of the governmental agency.
(a)Prior to entering into a lease for the financing of the purchase of any personal
property or real property, a governmental agency shall comply with other
provisions of law regarding the purchase of property for public purposes.
(b)The lease shall be deemed an instrument for financing and provisions of law
regarding purchases of property for public use shall not apply to the lease
itself.
(c)Leases may be entered into on a publicly advertised competitive basis or on a
private negotiated basis without advertisement.
(4)A sinking fund prescribed by KRS 66.081 shall be established for the payment of
leases which are not annually renewable and which are payable in whole or in part
from taxes and lease payments under those leases shall be made from the sinking
fund.
(a)Any action challenging the validity or enforceability of any ordinance or
resolution adopted by a governmental agency approving a lease shall be
brought within thirty
(30)days from the date on which notice of the adoption
of the ordinance or resolution is published in accordance with KRS Chapter
424.
(b)If the action challenging the validity or enforceability of the ordinance or
resolution is not brought within the time provided by paragraph
(a)of this
subsection, the action shall be forever barred.